Question: EX 10-19 Net present value method and internal rate of return method for a service company Buckeye Healthcare Corp. is proposing to spend $I86,725 on

 EX 10-19 Net present value method and internal rate of return

EX 10-19 Net present value method and internal rate of return method for a service company Buckeye Healthcare Corp. is proposing to spend $I86,725 on an eight-year project . that has estimated net cash flows of $35,000 for each of the eight years. Compute the net present value, using a rate of return of 12%. Use the present value of an annuity of $1 table in the chapter. Based on the analysis prepared in part(a), is the rate of return (1) more than 12%,(2)12%, or (3) less than 12%? Explain Determine the internal rate of return by computing a present value factor for an annuity $1 and using the present value of an annuity of $1 table presented in the text

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